Rockwell International Corp. v. United States

31 Fed. Cl. 536, 1994 U.S. Claims LEXIS 126, 1994 WL 325361
United States Court of Federal Claims·Decided July 8, 1994·No. No. 93-542C·Published·Cited by 8 cases

Opinion

MEMORANDUM OF DECISION

HARKINS, Senior Judge.

Pursuant to the jurisdiction conferred in 28 U.S.C. § 1498(a), Rockwell International Corporation (Rockwell) seeks reasonable and entire compensation from the United States for alleged infringement of U.S. Patent No. 4,368,098 (the ’098 patent). Rockwell’s patent is directed to an organo-metallic process for producing epitaxial films of Group III-V semiconductor on a single crystal substrate, a process that generally is referred to in the art as Metal Organic Chemical Vapor Deposition (MOCVD). Rockwell alleges that various Government procurements of image intensifying tubes for night vision equipment, photovoltaic cells, laser diodes and other devices involved development and/or manufacture using methods covered by the claims of the ’098 patent. Rockwell’s action involves the validity of the ’098 patent, infringement issues, and amount of compensation, if any, due.

The complaint identifies 16 contractors that are alleged to have participated in procurements of items covered by claims of the ’098 patent. Pursuant to RCFC 14(a)(1) and (c), defendant has issued notices to 37 companies, one of which is Hughes Aircraft Company (Hughes). Each of the 37 companies has an apparent interest in this action in that under their respective contracts with the United States they may be obligated to indemnify defendant.

RCFC 14(a)(1) provides:

The court, on its own motion or on the motion of a party, may notify any person with legal capacity to sue and be sued and who is alleged to have an interest in the subject matter of any pending action to appear as a party and assert an interest, if any, therein.

RCFC 14(c) provides procedures for issuance and service of the notice and specifies the notice shall “state that in case the third party fails to appear and assert a claim in the subject matter of the action, the claim or interest of the third party therein shall forever be barred.”

The notice to Hughes, and the other companies, reads in part as follows:

Pursuant to 41 U.S.C. § 114(b), 58 Stat. 649, you are hereby notified to appear within forty (40) days after service of this Notice upon you and to assert any claim or interest you may have in the subject matter of the above-entitled suit, by filing a complaint or answer herein in accordance with Rule 14 of this Court. If you fail to appear and assert a claim or interest in the subject matter of the suit, your claim or interest therein will forever be barred. For your information, this Notice is accompanied by copies of the following pleadings that have been filed herein: plaintiffs complaint, defendant’s motion to notice third parties.

The matter came before the court for oral argument on July 7, 1994, on nonparty Hughes’ motion to quash the notice or in the alternative for an extension of time to appear and answer the complaint. At the close of argument, counsel were told that Hughes’ motion would be denied, and the reasons for the decision were stated on the record.

Hughes acknowledges it has supplied products directly or indirectly to the Government [538]*538that were manufactured using MOCVD processes which Rockwell may argue are covered by the ’098 patent. Hughes further contends there has been no determination that Hughes is under any obligation to indemnify the Government, even if the processes employed by Hughes to manufacture these products were determined to infringe. Hughes is unwilling voluntarily to become a defendant in this action.

Hughes contends that the RCFC 14 notice is an unlawful attempt to require a nonparty to intervene or to bind the nonparty by conclusions of law and fact made in a suit in which the nonparty has not been and cannot be joined. The crux of Hughes’ argument is that the notice should be quashed “because it serves no purpose other than an unlawful attempt by the United States to bind Hughes to conclusions of law and fact reached as part of a judgment rendered in its absence.” Hughes cited as authority Martin v. Wilks, 490 U.S. 755, 763, 109 S.Ct. 2180, 2185, 104 L.Ed.2d 835 (1989) (a nonparty cannot be bound by a judgment merely because he had notice of the lawsuit and declined to intervene); Oak Forest, Inc. v. United States, 26 Cl.Ct. 1397 (1992) (quashing RCFC 14(a)(1) notices as inconsistent with Martin); RSH Constructors, Inc. v. United States, 20 Cl.Ct. 1, 7 (1990) (“the court has no power to create binding factual or legal determinations concerning parties who are not subject to the jurisdiction of the court”).

Rockwell and defendant contended the motion to quash the notice should be denied. Defendant argues that the notice authorized by RCFC 14(a)(1) to nonparties that have an apparent interest in this ease serves important purposes that are separate and independent from the future preclusive effects identified in RCFC 14(c). The third party practice in its modem development, as reflected in the provisions of RCFC 14, serves a lawful purpose in affording potential patent indem-nitors an opportunity to make a choice.

The third party practice has developed from the Contract Settlement Act of 1944, ch. 358, § 14, 58 Stat. 663. Currently, the relevant provisions are codified at 41 U.S.C. § 114(b) (1988 Supp. IV). Section 114(b) provides a procedure for both parties to have a notice given to nonparties:

The United States Court of Federal Claims, on motion of either of the parties, or on its own motion, may summon any and all persons with legal capacity to be sued to appear as a party or parties in any suit or proceeding of any nature whatsoever pending in said court , to assert and defend their interests, if any, in such suits or proceedings, within such period of time prior to judgment as the United States Court of Federal Claims shall prescribe ____

Section 114(b) provides a procedure for the Attorney General to have a notice given to nonparties:

The United States Court of Federal Claims may, upon motion of the Attorney General, in any suit or proceeding where there may be any number of persons having possible interests therein, notify such persons to appear to assert and defend such interests. Upon failure so to appear, any and all claims or interests in claims of any such person against the United States, in respect of the subject matter of such suit or proceeding, shall forever be barred and the court shall have jurisdiction to enter judgment pro eonfesso upon any claim or contingent claim asserted on behalf of the United States against any per person who, having been duly served with summons, fails to respond thereto, to the same extent and with like effect as if such person had appeared and had admitted the truth of all allegations made on behalf of the United States____

Section 114(b) limits the court’s authority to act relative to appearances after notice:

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Rockwell International Corp. v. United States, 31 Fed. Cl. 536, 1994 U.S. Claims LEXIS 126, 1994 WL 325361 (uscfc 1994).

31 Fed. Cl. 536 (Rockwell International Corp. v. United States) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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